Your son may be liable to pay into the Social Security and Medicare system by paying self-employment tax. However, if your son is under the age of 18, he is exempt from self-employment tax. His employer should complete the other income box on Form 1099-MISC (PDF), Miscellaneous Income. Persons engaged in the trade or business of delivering or distributing newspapers or shopping news (including any services directly related to such delivery or distribution) are considered by statute as non employees and are treated as self-employed for all Federal tax purposes, including income and employment taxes. They must receive income based on number of sales or distribution volume and work under a written contract that says the carrier will not be treated as an employee for federal employment tax purposes in order to be treated as independent contractors.

Independent contractors report their income on Form 1040, Schedule C (PDF), Profit or Loss from Business (Sole Proprietorship) , or they may qualify to use Form 1040, Schedule C-EZ (PDF), Net Profit from Business. See Form 1040, Schedule SE (PDF), Self-Employment Tax, which must be filed if net earnings from self-employment are $400 or more.

References:

• Publication 15, Circular E, Employer's Tax Guide
• Form 1040, Schedule C (PDF), Profit or Loss from Business (Sole Proprietorship)
• Form 1040, Schedule C-EZ (PDF), Net Profit from Business
• Form 1040, Schedule C Instructions
• Form 1040, Schedule SE (PDF), Self-Employment Tax
• Form 1040, Schedule SE Instructions
• Publication 334, Tax Guide for Small Business
• Tax information for Business
• Form 1099-MISC (PDF), Miscellaneous Income
• Publication 15-A (PDF) , Employer's Supplemental Tax Guide

Source: www.irs.gov